http://lssacademy.com/2007/10/19/the-right-inventory-is-an-asset/ Lean Manufacturing, Six Sigma, Lean Six Sigma, and Kaizen Sat, 12 May 2012 15:25:36 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://lssacademy.com/2007/10/19/the-right-inventory-is-an-asset/comment-page-1/#comment-1072 Ron Pereira Sat, 20 Oct 2007 16:45:25 +0000 http://lssacademy.com/2007/10/19/the-right-inventory-is-an-asset/#comment-1072 Great points Andy. Thanks for commenting. Great points Andy. Thanks for commenting.

]]> http://lssacademy.com/2007/10/19/the-right-inventory-is-an-asset/comment-page-1/#comment-1071 Andy Wagner Sat, 20 Oct 2007 15:21:04 +0000 http://lssacademy.com/2007/10/19/the-right-inventory-is-an-asset/#comment-1071 Ron, I think one reason that "kill inventory" has become such a passion of lean enthusiasts is because so many factories operate with inventory that is completely out of control, or maintained at levels that are high beyond reason. Intuitively, and technically, there is a point of diminishing returns with regard to inventory reduction. That said, you probably aren't anywhere close to it! What's important in dropping inventory levels is that you fix your problems as you do so. In the cheesy PowerPoint image you show, you wouldn't suddenly drop the water level to expose all three rocks. You would expose them one at a time and remove each completely before continuing your journey. Ron,
I think one reason that “kill inventory” has become such a passion of lean enthusiasts is because so many factories operate with inventory that is completely out of control, or maintained at levels that are high beyond reason.
Intuitively, and technically, there is a point of diminishing returns with regard to inventory reduction. That said, you probably aren’t anywhere close to it!
What’s important in dropping inventory levels is that you fix your problems as you do so. In the cheesy PowerPoint image you show, you wouldn’t suddenly drop the water level to expose all three rocks. You would expose them one at a time and remove each completely before continuing your journey.

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